long let mcdonald’s drive thru...

FRI lease until 2042 (no breaks)

Rent of £110,000 p.a. exclusive of VAT

Offers in excess of £1.80m exclusive of VAT / 5.78% NIY

Long Let McDonald’s Drive Thru InvestmentMcDonalds Drive Thru, 32 Whitburn Road, Bathgate EH48 2RA

INVESTMENT SUMMARYProminent town centre location

Modern McDonalds Drive Thru extending to 3,556 sqft with c.79 car spaces

Let to McDonald’s Restaurants Ltd until 2042 (25 years term certain income)

Current rental £110,000 per annum (£30.93 per sq ft)

5 yearly upwards only rent reviews to Open Market Value

Heritable Interest (Scottish equivalent of Freehold)

Offers sought in excess of £1.80 million exclusive of VAT

Providing an attractive 5.78% net initial yield

McDonald’s Drive Thru Investment 2

LOCATIONThe subjects are situated within Bathgate located approximately 28 miles east of Glasgow and 17 miles west of Edinburgh. The town has a population in excess of 21,000 people and is well positioned within Central Scotland benefitting from excellent communication links to the M8 motorway, central Scotland rail network and bus routes.

SITUATIONThe property is prominently situated on Whitburn Road close to the junction of Menzies Road and Linkston Way adjacent to Morrisons food store, Home Bargains, Iceland, B&M and Bathgate Retail Park.

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McDonalds

Iceland Foods

Home Bargains

Morrisons

Lidl

Argos

B&M Home Store

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DESCRIPTIONThe property comprises a modern single storey detached McDonalds Drive Thru Restaurant developed in 2011. The tenant has expanded the site to take additional car parking spaces and the lease has been re-geared from January 2017.

The property extends to 3,556 sqft (330 sq m) and has been constructed to McDonald’s latest specification. Externally there are currently 35 car parking spaces with capacity for a further 44 on site. The property benefits from a recent fit out refresh following the modern operator branding & format.

Access is off Whitburn Road and the site area extends to approximately 0.41 hectares (1.014 acres).

TENUREHeritable interest (Scottish Equivalent of Freehold).

LEASEThe property is let to McDonalds Restaurants Ltd from 26 July 2011 until 16 January 2042. The current rental is £110,000 per annum (£30.93 per sqft). The lease is held on Full Repairing and Insuring terms subject to 5 yearly upward only rent reviews to open market value. The next rent review is 17 January 2022.

ENERGY PERFORMANCE CERTIFICATEThe property has an EPC rating of D. This report can be provided upon request.

VATThe property is elected for VAT and therefore VAT will be applicable to the purchase price. It is anticipated that the sale will be dealt with as a TOGC.

Additional 44 spaces

SITE PLAN(indicative only)

COVENANTTenant: McDonald’s Restaurants Limited (company number: 1002769)

McDonalds is the most well known fast food and drive thru restaurant operator in the UK with over 1,250 restaurants and in excess of 38,000 UK employees. The company is also the world’s largest chain of quick service restaurants servicing over 10 million customers daily.

The company is continuing to expand and has plans to open a further 400 restaurants in the UK over the next 10 years creating over 2,400 jobs annually. The focus for this growth will be freestanding drive thru restaurants in close proximity to retail and transport hubs as per the subject property.

The company has a 5A1 D&B rating indicating minimum risk of business failure. A copy of the D&B report is available on request.

McDonalds Restaurants Ltd (non consolidated)

31/12/2015 (£,000’s)

31/12/2014 (£,000’s)

31/12/2013 (£,000’s)

Sales Turnover £1,535,510 £1,432,592 £1,497,573

Profit / (Loss) Before Taxes £270,826 £225,428 £244,885

Tangible Net Worth £903,374 £931,302 £799,006

Net Current Assets (Liabilities) (22,483) 46,133 (13,972)


The Agents for themselves and for the vendors and lessors of this property whose agents they are, give notice that: 1. The particulars are produced in good faith, are set out as a general guide only and do not constitute part of a contract, 2. No person in the employment of The Agents has any authority to make or give any representation or warranty whatsoever in relation to this property, 3. The images of the development are correct as at the date of publication and 4. All floor areas and site areas quoted will be subject to final verification upon completion of the development. Date of publication February 2017.

LEGAL COSTSEach party will be responsible for their own legal costs incurred with the purchaser being responsible for any Land and Buildings Transaction Tax (LBTT), recording dues and VAT as applicable.

CAPITAL ALLOWANCESCapital allowances will be retained by the vendor in this instance.

PROPOSALWe are instructed to seek offers in excess of £1.80 million (one million eight hundred thousand pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 5.78% after taking account of standard acquisition costs and LBTT at approximately 5.76%.

FURTHER INFORMATIONPlease contact the joint selling agents:

Nick Armstrong 0131 473 3223 [email protected]

John Conroy 07979 494915 [email protected]

Keith Aitken 0131 469 6024 [email protected]

Will Sandwell 0131 469 6016 [email protected]

long let mcdonald’s drive thru...

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